Pneumo Abex Corp. v. Bessemer & Lake Erie Railroad

936 F. Supp. 1274, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20241, 1996 U.S. Dist. LEXIS 14673
District Court, E.D. Virginia·Decided September 12, 1996·No. Civil Action No. 2:94cv716·Published·Cited by 2 cases

Opinion

MEMORANDUM OPINION AND ORDER (Settlement Approval)

JACKSON, District Judge.

INTRODUCTION

This matter comes before the Court upon Plaintiffs’ motions for approval of settlements and dismissal and bar of claims. Plaintiffs initiated this action pursuant to sections 107 and 113 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§ 9607, 9613 (1994), as amended by the Superfund Amendments and Reauthorization Act of 1986 (“CERCLA”), and the Declaratory Judgment Act, 28 U.S.C. § 2201(a) (1994). Plaintiffs seek recovery of costs allegedly [1276] incurred in responding to releases or threatened releases of hazardous substances at or from the Pneumo Abex Superfund Site (“Site”) and a declaration that Defendants are jointly and severally liable for all future such costs. By order filed March 25, 1996, the Court held that the remaining Railroad Defendants, as denominated in that order, and Consolidated Rail Corporation were liable as generators under § 107(a) of CERC-LA

At the outset of the trial of this case to determine divisibility of harm and allocation of liability, Plaintiffs entered into settlement agreements with a number of Defendants. Plaintiffs now move the Court for dismissal of claims and bar of future claims as follows:

1) for Defendants American Premier Underwriters, Inc.; Bessemer and Lake Erie Railroad Company; Consolidated Rail Corporation; Florida East Coast Railway Company; Greenlease Holding Company; Lake Terminal Railroad Company; Richmond, Fredericksburg & Potomac Railroad Company; Trian Group, Limited Partnership; and Union Railroad Company, as well as Third-Party Defendant Wimco, Inc. by motion filed May 23,1996,
2) for Defendants Holland Investment and Manufacturing Company, Inc.; John C. Holland, Jr.; and Runnymede Corporation by motion filed May 30, 1996, and
3) for Defendant Cambria & Indiana Railroad Company by motion filed May 30, 1996.

The Court collectively refers to Defendants that have entered into settlement agreements with Plaintiffs as “Settling Defendants.” The Court refers to Defendants CSX Transportation, Inc., Fruit Growers Express Company, Inc., Norfolk Southern Railway Company, Norfolk & Western Railway Company, and High Point, Thomasville and Denton Railroad Company which remained in the case through the trial as “Remaining Defendants.”

On June 7, 1996, Defendant Richmond, Fredericksburg & Potomac Railroad Company (“RF & P”) filed a motion to “Modify Plaintiffs’ Motion” which Defendants Bessemer and Lake Erie Railroad Company (“B & LE”), the Lake Terminal Railroad Company (“LTR”), and the Union Railroad Company, Inc. (“Union”) joined and adopted on June 17, 1996. On June 24, 1996, Defendant Consolidated Rail Corporation (“Conrail”) filed its opposition to one of RF & P’s proposed modifications. On August 21, 1996, Plaintiffs filed a motion to join RF & P’s request for modification of the proposed settlement agreement. As of this date, Remaining Defendants have not filed opposition to any of these motions.

The Court has reviewed the submissions of the parties and the relevant case law. This matter is now ripe for judicial determination.

DISCUSSION

Regarding the dismissal and bar of claims, Plaintiffs move the Court for the following:

1. dismissal with prejudice of all claims, cross-claims, and counterclaims attributable to Operable Unit 1 (“OUl”)1 of the Site,
2. dismissal with prejudice of all claims, cross-claims, and counterclaims relating to future costs for any operable unit of the Site other than OUl, and
3. bar of all future claims under CERC-LA seeking recovery of or contribution for any response costs attributable to OUl.

(See, e.g., Pis.’ May 23, 1996 Mot. at 2-3.) Plaintiffs also move the Court to enter an order specifying that the Uniform Contribution Among Tortfeasors Act (“UCATA”)2 will govern the effect of the releases of claims arising under sections 107(a) and 113(g)(2) of CERCLA and section 7002(a)(1)(B) of the Solid Waste Disposal Act (“SWDA”), 42 U.S.C. § 6972(a)(1)(B) (1988), as amended by the Resource Conservation [1277] and Recovery Act of 1976 (“RCRA”)3 and that the Uniform Comparative Fault Act (“UCFA”)4 will govern the effect of the releases of claims for contribution arising under § 113(f) of CERCLA and § 7002(a)(1)(B) of the SWDA. {See, e.g., Pis.’ May 23, 1996 Mot. at 3-4)

Defendant RF & P raises two concerns regarding the dismissal and bar of claims. First, RF & P requests that the Court not limit the bar of future claims to only those arising under CERCLA. RF & P argues that the parties, in entering in the settlement agreements, did not contemplate such a limitation. Also, RF & P requests that the Court add language to its order, barring all future claims, to exclude those “claims arising out of express contract.” Defendants B & LE, LTR, and Union Join RF & P in raising the concern over limiting the bar to claims arising under CERCLA; however, they join RF & P in the motion to add language concerning express contracts “only if the term ‘express contract’ is specifically designated not to include any of the Settlement Agreements between Plaintiffs and the Settling Defendants.” (Joinder at 2.) Defendant Conrail opposes RF & P’s proposed language to exclude claims arising out of express contract because that language “might exclude compulsory counterclaims that RF & P should have brought in the present action pursuant to Rule 13(a) of the Federal Rules of Civil Procedure.” (Conrail Opp. at 1.)

A. The Limiting Language: “under CERCLA”

An examination of the settlement agreements indicates that Plaintiffs agreed to move the Court for a dismissal of all future claims and did not limit the claims to those arising under CERCLA. However, Plaintiffs initiated this action under CERC-LA and the Declaratory Judgment Act, not the SWDA, as amended by RCRA, or any other environmental law. Thus, the Court has only considered the liability of the parties under CERCLA. The Court recognizes, however, that the Consent Decree between Plaintiffs and the United States in United States v. Pneumo Abex Corp., Civ.A. No. 2:96cv27 (E.D.Va. filed Apr. 25, 1996), includes a covenant by the United States not to sue Plaintiffs under § 7003 of the SWDA.5 Despite the possible future application of RCRA or other environmental laws to the Site and the parties, the Court will only address those claims arising under CERC-LA, the substantive statute of this action.

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Pneumo Abex Corp. v. Bessemer & Lake Erie Railroad, 936 F. Supp. 1274, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20241, 1996 U.S. Dist. LEXIS 14673 (E.D. Va. 1996).

936 F. Supp. 1274 (Pneumo Abex Corp. v. Bessemer & Lake Erie Railroad) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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